How to Handle the Fear of Home Buying
The photo above was chosen for a reason… everyone would love the ability to see into the future to know things are going to be okay before buying a home. There are so many emotions during the process: excitement, stress, joy, anxiety, frustration, relief and the list goes on. I have felt the same things personally and do every time I buy a home, whether it be for my family to live in or as an investment. It’s just part of the ride.
That’s where I can lend some sound, professional advice, based from a position of experience. Nothing is “perfect” and there will be some bumps in the road more often than not, but buying a home is worth it 99.9% of the time.
Many younger folks today saw their parents face a short-sale or even foreclosure back in 2008-2012, which has made them think twice before jumping into home ownership. However, that was a different time and too many people abused the loan programs available to them. There was plenty of fault on the banking system too, believe me. The guidelines to buy now are different and aimed to not have a repeat of our recent history.
When mortgage interest rates went down so much, people got spoiled with 3.5% rates… that’s just not realistic for the long-term. Historically, rates under 7% are fantastic! Today, we are seeing rates right around 4%, depending upon credit score and financing type. These are forecasted to rise slowly over the next couple years and be a little under 5% by end of 2018 perhaps. However, there are many variables involved and nobody has the crystal ball to know for sure.
Some people say they’re ‘waiting for prices to come down’… well, who knows when that will be. Plus, if prices keep rising, by the time they come down, they may still be higher than they are today. If rates are higher, then affordability also lessens so even if prices are 5% lower than they are today, with a higher interest rate, you could end up paying more for the home over the life of the loan.
Someone can always find a reason why it’s not the right time to do anything… however, it’s those that jump in, which have a chance at something great. We look at your individual situation, your goals and then customize the right plan to get you there. Sometimes now is the right time and sometimes not. I’ll give you my honest opinion and then you can make your own decisions from there.
I’ll end this blog post with a quote I love and have hanging on my office wall, in fact: “Feeling uncomfortable is a sign of growth”.